Entegris Clocks 49% Sales Growth In Q4; Shares Cautious Outlook Due To Macro Uncertainties

Entegris, Inc ENTG reported fourth-quarter FY22 sales growth of 49% year-on-year to $946.1 million, missing the consensus of $951.8 million.
Revenue from Specialty Chemicals and Engineered Materials segment rose 23.8% year-over-year to $204.2 million; Microcontamination Control expanded 10% year-over-year to $284.7 million; Advanced Materials Handling improved 8.2% year-over-year to $213.9 million. Advanced Planarization Solutions' revenue grew from $23 million to $253.8 million.
Margins: The adjusted gross margin contracted 370 basis points to 42.8%, and the adjusted operating margin reduced 460 bps to 23.2%.
The non-GAAP EPS of $0.83 beat the consensus of $0.78.
Entegris generated $32.1 million in operating cash flow and held $563.4 million in cash and equivalents.
"This above-market growth was driven in large part by our strong position at the leading-edge technology nodes," CEO Bertrand Loy said.
Mr. Loy added: "2023 is shaping up to be an uncertain year for the semiconductor industry. Given this backdrop, we will take the necessary steps to manage costs, prioritize cash flow and debt paydown while making the R&D investments that are critical for our future growth."
Outlook: Entegris sees Q1 sales of $880 million - $910 million, below the consensus of $913.5 million.
It sees non-GAAP EPS of $0.50 - $0.55, below the consensus of $0.78.
Price Action: ENTG shares closed higher by 1.41% at $84.94 on Monday.

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